Mississippi Casinos Face Higher Taxes If Online Sports Betting Fails

Mississippi casinos could see their state taxes on gross gaming revenue affected significantly if the Senate does not move forward with the House’s online sports betting initiative.

On a recent Tuesday, the Mississippi House Ways and Means Committee passed House Bill 1881, also known as the “Integrity in Gaming in Support of Honest Taxpayers Act.” This bill aims to recoup tax revenue that Mississippi is currently missing out on by not permitting online sports betting, even though legal sports gambling is available at most of the state’s 26 commercial casinos and three tribal properties.

Sponsored by state representative John “Trey” Lamar (R-Senatobia), this legislation would increase the effective tax rate on commercial casino revenue from 12% to 16%. Lamar estimates this tax hike could yield an additional $50 million annually for the state.

Current Status of Online Sports Betting in Mississippi

• Mississippi is one of 39 states permitting legal betting on professional and college sports.
• However, bets can only be placed through physical casinos, limiting many potential gamblers.
• The majority of sports bets in states with both in-person and online sportsbooks are made online.

Lamar has been advocating to broaden Mississippi’s sports betting regulations to include online platforms. Recent bills such as House Bill 1302 have successfully passed through the state House but face strong opposition in the Senate. Some legislators express concern that online sportsbooks might reduce foot traffic to physical casinos, leading to a decrease in gaming and tax revenue.

Smaller casinos have also raised concerns about their ability to compete in an online sports betting environment, as major players like FanDuel, DraftKings, and BetMGM might form partnerships with luxury casinos along the Gulf Coast, such as Beau Rivage, Island View, Hard Rock, and Golden Nugget.

If the Senate intends to keep sports wagers limited to physical casinos, Lamar argues that those establishments must compensate by paying higher taxes to offset losses from restricted sports betting regulations. Representative Casey Eure (R-Harrison), who is co-sponsoring the online sports betting bill, has backed Lamar’s proposed tax increases.

Public Perception and Legislative Challenges

Public sentiment seems to lean towards supporting mobile sports betting. A recent poll indicated over 60% of Mississippians are in favour of legalising it. Eure commented, “I’ve received more inquiries about mobile sports betting than on any other topic during my time here.”

“People are currently engaging in mobile sports betting via overseas companies,” Eure added.

Opposition from Religious Groups

Not all perspectives support the expansion of online sports betting. Influential religious organisations, including the Mississippi Baptist Convention, have voiced strong opposition. They urge their members to contact representatives to voice their concerns against online gambling.

According to a recent statement, the Baptist Convention expressed that, “Any form of gambling goes against the tenth commandment, and triggers negative consequences for society.”

Key Points:

• Mississippi’s potential tax increase on casinos could amount to $50 million annually.
• The debate around online sports betting remains contentious, involving interests from both religious groups and economic stakeholders.
• Public support for mobile sports betting is notably high, adding pressure on legislative bodies to reconsider their stances.

As Mississippi navigates through these discussions surrounding online sports betting, the outcome will influence the future landscape of the gambling industry in the state and its overall economic health.